Hong Kong 1980: The Savage Era

Chapter 407 Chapter 408 [Asia Television]

In the first half of the year, there was a sensational news in Hong Kong: Qiu Degen’s eldest son Qiu Dacheng hit and killed a police officer due to drunk driving, and the police station brought Qiu Dacheng to court in accordance with the law.

However, due to Qiu Degen's influence, the lawsuit did not end quickly, but dragged on for nearly half a year, and it was not until around September that it was announced that Qiu Dacheng was imprisoned.

This incident made Qiu Degen physically and mentally exhausted. In addition, although ATV was profitable, it could not compete with TVB at all. Qiu Degen had already spread the word that he wanted to sell ATV's shares.

In fact, Qiu Degen is a very stingy person. When he first took over ATV, he launched a number of reforms in ATV, including tightening resources and reducing costs.

At that time, some people accused Qiu Degen of being mean to Asia Television. For example, the costumes in historical dramas were the same regardless of the Tang, Song, Yuan or Ming dynasties; Asia Television staff could only use four compartments of toilet paper a day; and the New Year red envelopes were in the form of Far Eastern Bank (a bank owned by Qiu Degen) vouchers.

Even though Qiu Degen argued that he should spend money when he should, no matter how stingy he was, it could not save this person's reputation as stingy.

However, Qiu Degen is indeed capable and was able to turn losses into profits under such circumstances. If his eldest son Qiu Dacheng had not been imprisoned, Qiu Degen might not have sold the controlling stake in Asia Television.

Tsim Sha Tsui Kowloon Hotel
Cheng Yu-tung and his son, Lin Pak-yan and his son, and Luo Qihong gathered here to discuss the acquisition of Asia Television's shares.

Luo Qihong took a sip of wine and said with a smile, "The current radio market is dominated by wireless TV stations. Qiu Degen is a tough guy, but he spent six years and didn't grab much market share. He just achieved 'turning losses into profits'."

"If we take over, we will definitely open up the taps, and I'm worried that there will be big disagreements on how to spend the money."

Luo Qihong's words may sound harsh, but 'it's hard to satisfy everyone' has always been the best truth. Of course, he has the ability to take over Asia Television on his own.

Lin Jianyue was a little unconvinced, "How much does Luo Sheng think it will cost?"

The Lin Baixin family owns many industries, and the Li & Fung Group is the leader among them. It is not inferior to the trading company owned by the Luo Qihong family, and its annual profit is at least several hundred million yuan.

"According to my budget, we need to spend hundreds of millions of yuan every year, and it will take several years." Luo Qihong smiled slightly. There was nothing wrong with Lin Jianyue's impatience, at least Luo Qihong would not blame him.

Hearing this, Lin Jianyue frowned slightly. Hundreds of millions of yuan per family, and the expenses, swallowed up most of the profits of the Li & Fung Group. It was a bit scary.

"Ah Hong, we don't have to beat TVB. As long as we can occupy 40% of the market, that's enough." Cheng Yutong said calmly. He didn't want Luo Qihong to have a conflict with the Lin family.

Because Lin Baixin is getting old, Lin Jianyue will be in charge of Asia Television.

"Uncle Tung, let me put it bluntly, Qiu Degen is not incompetent, so why didn't he defeat Run Run Shaw? I think it's because Qiu Degen is too stingy. If we want to occupy 40% of the market like Qiu Degen, I think it will be difficult and we will still be suppressed by TVB." Luo Qihong said with a sigh.

"Qiu Degen will still hold a portion of Asia Television's shares. If you spend so much money, he may not respond. We still have to be friendly when doing business. We should spend less if we can." Cheng Yutong mediated and subtly reminded Luo Qihong not to be too overbearing.

"Okay, since Uncle Tong has spoken, I think I'll split it in half." Luo Qihong said with a smile, "Everyone knows that Run Run Shaw and I have some grudges, so I might be a little irrational."

Lin Baixin took a deep look at Luo Qihong. He felt that Luo Qihong was not an easy person to get along with, but with Cheng Yutong under pressure, Luo Qihong had to give him face.

In fact, Lin Baixin couldn't understand that Luo Qihong was notoriously domineering. Even people like Pao Yue-kong and Li Jiacheng might not give him face, but he was "bowing" to Cheng Yutong.

He had never heard of Cheng Yu-tung doing any great favors to Luo Qihong, so there must be something else going on. "I suggest spending a lot of money to implement the strategy of 'cutting off the firewood from under the cauldron' and digging out the core personnel of TVB. This is also one of the reasons why I suggested opening the tap." Luo Qihong continued.

"I agree with this suggestion. TVB relies on its foundation, which happens to be made up of talent." Lin Baixin immediately supported Luo Qihong's statement. "Run Run Shaw is as stingy as Qiu Degen, which is a big weakness. I heard that some core staff members in TVB have long been dissatisfied with Run Run Shaw's stinginess. Our chance has come."

"Okay, then let's get people to poach the talent and empty out TVB." Cheng Yu-tung also expressed his opinion.

"I have a question. Qiu Degen is only willing to sell 70% of the shares. How do we distribute these shares?" Zheng Jiachun asked.

"Uncle Tong, Dalinsheng, what do you think? It's okay for me to take less equity." Luo Qihong said with a smile.

Since there are losses, there must be gains. With less equity, one must have more management rights, otherwise it would be too much to justify the human relations and face.

This is also the cleverness of Luo Qihong. The current Asia Television must not have any dividends. With less equity, the capital injection will also be less.

As for future dividends, it is enough to get the shares in advance.

"Bai Xin, what do you say?" Cheng Yutong asked.

Of course Lin Baixin knew that Luo Qihong was playing tricks, but he couldn't think of Luo Qihong's next move, because he didn't expect that Qiu Degen would also sell his 30% stake.

"How about this, Luo Sheng takes 20%, and our two families each take 25%, how about that?" Lin Baixin suggested.

"Ah Hong, what do you say?"

Luo Qihong finished drinking the red wine and said, "I was thinking of taking 15%. Dalinsheng actually gave me so much. Okay, then I'll take 20%."

This is the truth. Luo Qihong no longer values ​​equity. He only wants management rights. Of course, under the current circumstances, he can ask for less management rights, but more say will be enough.

"OK! Let's make it this way. I will reply to Qiu Degen tomorrow." Lin Baixin said.

"I have another suggestion. We should invite Zhou Liang Shuyi back to be responsible for poaching and managing artists. What do you think?" Luo Qihong said.

Lin Jianyue looked at Lin Baixin and said, "Dad, I think what Luo Sheng said makes sense, why not give it a try."

It seems that Lin Baixin does not want to use Zhou Liang Shuyi. As for why, Luo Qihong does not quite understand the reason.

"Chow worked at TVB for a while and worked with Ho Sau-chi (founder of ATV, where Chow worked for three years) at ATV for three years. She should be very familiar with the work of a TV station. I think she is a good candidate," Cheng Yu-tung said. "In addition, Chow has good connections with the Hong Kong government and can play a role."

Seeing that Cheng Yutong agreed, Lin Baixin could no longer object and nodded in agreement.

The five people continued to discuss other matters and did not leave until after 5 o'clock in the evening.

(End of this chapter)